Money markets on Tuesday scaled back European Central Bank (ECB) rate hike bets to 137 basis points (bps) by the end of the year from 145 bps on Monday amid recession fears, Reuters reported.

Market reaction

This headline doesn't seem to be having a noticeable impact on the shared currency's performance against its rivals. As of writing, the EUR/USD pair was trading at 1.0010, where it was down 0.28% on a daily basis.

Meanwhile, markets remain cautious on Tuesday with the Euro Stoxx 600 Index losing 0.3% on the day.